PGS Receives Contract Extension for FPSO Petrojarl I

PGS expects that its Petrojarl I FPSO will remain on contract with the Glitne license well into 2005 because Statoil has confirmed plans to drill at least one new production well on the field during 2003.

In the context of this decision, certain modifications to the production contract with the Glitne license have been agreed. PGS estimates that these changes will result in an increase in revenues of approximately $80 million from January 1, 2003 forward.

The Glitne license is situated in Norwegian blocks 15/5 and 15/6, and is produced under Production Licenses PL 048B and PL 029B. License partners to Statoil (58.9%) are TotalFinaElf (21.8%), Det Norske Olsjeselskap (10%) and Dansk Olie- og Naturgas Norge (93%).